HOG FUTURES END HIGHER

CME lean hogs drew more support from participants that bought that contract and simultaneously sold live cattle futures through a trading strategy known as spreads.

“There was huge spreading. In fact that’s one of the major plays of the algorithm traders,” said Linn Group’s Ginzel.

December hogs ended up 1.375 cents per pound to 62.025 cents and above the 200-day moving average of 61.969 cents. February closed 1.400 cents higher at 68.475 cents, above the 40-day moving average of 68.431 cents.

Based on USDA’s Monday wholesale pork prices, retailers may have bought product to avoid potential shortages due to holiday plant closures, a trader said. Pork belly prices surged as end-users store them for spring and summer bacon demand, he said.